has a major affect on lead time, reliability and other
measures of customer service
• determines the best size and location of facilities
• gives public exposure with visible locations, advertising
on trucks, ‘corporate citizenship’, and so on
• can be risky, because of safety, health and
environmental concerns
• prohibits some operations, such as moving excessive
loads or dangerous goods
• can encourage growth of other organisations – such as
suppliers and intermediaries offering specialised
services.